The July contract of palm oil closed the session this Wednesday (10) in stability with an upward bias (+0.09%) in Malaysian Derivatives Exchange (MDEX)The price for the Brazilian crude oil futures contract rose 0.20% to US$1,106.50/ton. The August contract advanced 0.20% to US$1,116.25/ton. On the other hand, so far this week, futures have accumulated losses of 1.49% and 1.24%, respectively.
In this trading session, prices were boosted by investors' reaction to the report. Malaysian Palm Oil Board (MPOB)which pointed to a 7% drop in the country's commodity production, to 1.52 million tons. The market had expected a 4.9% decrease.
Furthermore, independent freight companies in Malaysia estimate that the country's palm oil exports increased between 3.5% and 4.9% during June 1st to 10th.
Meanwhile, prices continue to be impacted by the price of oil on the international market. The value of this energy commodity was driven up by the renewed escalation of hostilities between the [unclear/determined] United States and the Iran, after the US government attacked targets in the Persian country.
Higher fuel prices on the international market make palm oil a more attractive option as biodiesel raw material.
THE Malaysian ringgit The exchange rate weakened 0.22% against the dollar, a factor that makes palm oil cheaper for foreign buyers.
Limiting further gains, palm oil closed down 0.13% in Dalian Exchange (DCE), while soybean oil stabilized on a downward trend (-0.05%) in the Chinese index.
The commodity's market value was also affected by other data released by the MPOB. According to the agency, Malaysia's palm oil exports fell by about 14%, reaching 1.1 million tons in May, the lowest level in a year.
Stocks of the commodity increased by 5.2% compared to the previous month, reaching 2.4 million tons.
This text was translated by machine from Brazilian Portuguese.